What will your State Pension be worth when you retire?

PENSIONS

State Pensions - an introduction

The State Pension is a regular payment you can receive when you reach State Pension age. It is based on your National Insurance contributions and how much you get varies. Find out how much you can get and when and how to claim your State Pension.

The State Pension as part of your retirement plan

Once you claim your State Pension, it gives you a regular income for the rest of your life. It can give you a reliable foundation for your income in retirement, although it might not be enough to support the lifestyle you want. So you may decide you want to save for yourself on top of what the State provides.

If you want to make a plan for your retirement, it is worth knowing what sort of State Pension you may become entitled to.

Here are some of the main questions you might be asking about your State Pension. They should help you get started in planning for the future.

If you want to find out more, or start making a plan, you'll find some useful links at the bottom of the page.

How much is my State Pension?

The State Pension is made up of two parts, the basic State Pension and the additional State Pension. Different people get different amounts of each.

The amount of State Pension you get depends on how many qualifying years of National Insurance you have. See ‘How your State Pension is worked out’ to find out how this works.

In 2011-12, a single person can get up to £102.15 a week basic State Pension, though some people get less than this. Many people get more than this amount, because they also get an additional State Pension.

When and how you can claim your State Pension

You can claim your State Pension once you reach your State Pension age. You do not have to claim it straight away. If you put off getting it you may be able to increase the amount you get.

Four months before you reach State Pension age, The Pension Service will write to you. The letter will tell you if you need to claim your State Pension. If you are getting certain social security benefits you may not need to claim.

Find out what you need to do if you haven’t been contacted when you’re three months from your State Pension age. See ‘Claiming the State Pension’ for more information on claiming your State Pension.

Changes to State Pension age

The State Pension age is increasing. To find out more see ‘Calculating your State Pension age’.

What happens when you can't pay National Insurance?

Sometimes you may not be able to pay National Insurance, for example if you are ill or unemployed. In many cases, the government makes your National Insurance contribution for you by giving you National Insurance credits.

You may also get National Insurance credits if you are getting Child Benefit or caring for someone who is sick or disabled. You may also get other types of National Insurance credits.

What will your State Pension be worth when you retire?

If you live in the UK or in certain other countries, the State Pension normally increases each year.

See ‘State Pension and Pension Credit rate: how much can you get?’ for information about how we increase pensioner benefits.